Market Perspective Mid-June 2022

Bear markets provide opportunity and are historically brief.

As a general sense of uncertainty continues to drive volatility in the markets inching us towards a possible recession, we would like to highlight the importance of the staying the course and thinking long-term. We have, are and will continue to make tactile changes to our portfolios to reduce risk, increase diversification and protect as the markets evolve.

Providing you with peace of mind during this most challenging time is our number one priority. History has shown that markets have powered through past periods of these market shocks. It is important to remember market pullbacks, corrections and even bear markets are a normal part of being a long-term investor.

One thing is clear, there’s plenty of positives in the economy right now that have totally been ignored including a strong labor market (near 50-year low unemployment), strong household spending, strong business investments, and strong industrial production. Eventually, the market will take notice. Unfortunately for now, the market is pricing in the worst.

What's Next

There is still hope the Fed can strike the right balance between managing inflation and slowing down the U.S. economy. It would be very unusual for a recession to start at a time when unemployment is near its all-time low and demand keeps pushing prices higher. The recent market sell off did have a hint of panic to it as everything just seemed to go down. This panic has resulted lately with good stocks getting sold by investors just to stop the pain. The turning point will come once inflation is under control. Lower inflation would take pressure off the Fed and other central banks to raise rates quickly, reversing the negative feedback loop the market and the economy seem to be stuck in.

• Short Term: Expect continued market volatility and consolidation.
• Longer Term: Aggressive Fed policies and new USA factories to reduce our dependence on China and Russia should provide a powerful economic force years into the future.

What to Do Now

• Communicate immediately if your investment objectives, risk, or goals have changed.
• Now is not the time to “time” the Market.
• Maintain long-term perspective.
• Confirm cash flow needs.
• Continue to contribute annually.

Final Thoughts

Volatility is the price we investors pay for above-average long-term returns. It is not an easy or a fun part of our journey. Please feel free to contact me or one of my valued team members anytime!

Who was the great financier in the Bible? Noah.

He was floating his stock while everyone else was in liquidation. Have a great day!